15-Minute Strategy Binary Options
There is an idea among traders that a 15-minute timeframe is the best to use for binary options. In addition, there are so many trade strategies that are convenient for working with a minimal deposit.
A detailed review of this timeframe will be presented below. You will find out about the strong and weak sides of the 1-minute graphs and the features of strategies that were developed for this period, and also get a lot of recommendations that will allow you to improve the quality of your deals.
What is a 15-minute strategy?
Before considering all the nuances of 15-minute binary options, let’s see what exactly they exactly. There are 2 standard interpretations:
- All deals are made on 15-minute graphs and expire is 15 minutes (3 candlesticks).
- Deals are made on M15 and expiration is shown accordingly to strategy conditions (3-5 candlesticks are used more often (from 45 minutes to 1 hour 15 minutes).
These approaches are equal, and it’s not necessary to think too much about which of them is more correct. Use whichever is more suitable for your work schedule.
To make a decision, think about the reason that you want to work with M15. Besides its popularity, there are 2 goals that can influence your decision:
- Increase in earnings because of intensive trading
- Trade in conditions of deficit
Warning! If you just learned about all of the possibilities of binary options trade or have less than 1 year of regular practice, then choosing a 15-minute timeframe for realization of the first goal (increased intensity) can be very dangerous.
This is a short time interval that requires taking into consideration a lot of additional factors. That’s why only experienced traders can successfully increase the frequency of deals. Later you will realize why this is so.
The interrelation of M15 and another timeframes
We would like to remind you that the strategies for 15-minute binary options are methods for professionals and traders who have a limited number of minutes available.
As soon as you understand this condition, we can continue.
It is necessary to pay attention to the movements of higher timeframes rather than putting a 15-minute expiration or choosing this time frame.
Here are the following recommendations:
- working with M5 follow H-1
- working with M15 use H-4
The impulse movements appearing on M5 or M15 are not very sustainable. Since the main rule of technical analysis prohibits opening deals against the trend, you can avoid doing so with the help of 1-hour or 4-hours graphs. It will happen this way:
- A trader determines an entry point by choosing a strategy for profit
- He or she opens H1 or H4 graphs for the same asset and looks at their condition for a few seconds before the asset’s activation. The deal is made if the entry on buying is expected, and the upper graphics confirm this signal by its rising trend. Otherwise, it is better to stay out of the market (the same goes for selling).
The higher timeframe is one of filters that allows to block out so-called “market noise” that affects all of the strategies for 15-minute options. It is not necessary to use it, but it is valuable to include it in the current system as possible.
Similarity of the M15 strategy with other systems
We won’t go into detail but rather list the tools and concepts that persist for this type of strategy. You can work with all available indicators (in all variations and quantities). In other words, you can use any tool that you want to select the trading algorithm.
The result can be influenced by the output of news that is published in the economic calendar. If you expect some kind of news, try not to enter the market for 2-4 hours before and after its introduction. Now let’s talk about the nuances.
Technical features of strategies for M15
It is better to start from a «support and resistance» level action. For the 15-minute graphs, support and resistance levels will play a secondary role. At any level, there is a price zone that starts from one value and finishes at another. Let’s assume a trader sees support at 1.1500. He can assess it in the following way:
- Level 1.1500 is equal to line 1.1500 (it’s a bad choice)
- Level 1.1500 is equal to zone 1.4950 – 1.5050 (it’s a good choice)
This means that the price is able to break through any technical level for a short period of time. Such a turn is quite acceptable and painless for traders who work with hourly and higher graphics. What’s concerning about the 15-minute strategy is a fairly short period of expiration, which will not allow the level to affect the price.
The conclusion: the presence of any level must be confirmed by 2 or more additional signals. Any trading decisions can’t be made without this confirmation.
It is inappropriate to use candlestick analysis as a strategy for 15-minute binary options. That means opening the deal once the patterns appear: «Takeover», «Harami», «Cloud cover», «Hammer and hanging man», etc. The completed formations are unsustainable. It is necessary to use a timeframe not lower than H4 to get a true signal that is suitable for a prognosis. For the same reason, it is not necessary to look for relevant graphic figures («Triangle», «Flags», «Pits/Tops», etc.).
There is a service at some broker companies that allows you to continue trading on the weekends. This is possible because a broker makes a visual trajectory of quotations at his discretion and users try to predict it. Momentum is very important for 15-minute strategies. It can be gotten only during working days when there are big players present. Here is the conclusion: do not trade on weekends.
Volatility should be taken into account
This term means the average number of points that is passed by a chosen asset during a day. It should be known that this indicator mostly depends on the popularity of a trading instrument and a present session.
As far as the level of volatility, 15-minute strategies must have an average or higher value (there is a short period of expiration, that’s why the market should quickly move in the chosen direction). We will determine the volatility level according to the following plan:
- Look at the table of trading sessions
- Look at the table of the popular assets’ volatility during every session period
- Find a time when it is convenient for you to work with an instrument that has essential volatility
If you do not know which asset is better to use, please go by following recommendations:
- It is not desirable to have more than 3 instruments (the number of deals is strongly affected by this)
- The chosen asset should be fairly popular; otherwise it will be difficult to find appropriate signals
- Learn all the features of your instrument: from historical maximums to a news list that can affect the movement
As you see, 15-minute strategies require a lot of work. This is why you don’t want to waste your energy on superfluous things. The more information you have, the better the quality of your deals.
Operating principle of working with binary options using 15-minute strategies
There are a lot of articles on the Internet about dealing with binary trading that describe the following ideas:
- The advantage of intra-trade is that it is possible to open a large number of deals
- The short timeframes require you to constantly be at your computer
These ideas are so straightforward that they don’t cause any doubts. However, let’s think about it:
You have a little time during the day that you want to spend on the binary market (as mentioned above, there is no sense working with M15). Therefore, the number of profitable deals that can actually be obtained won’t be too large (on average it will be between 1 and 3).
Let’s assume that you decide to follow this plan: 1 day = 1 hour = 1 qualitative signal = 1 profitable deal (it is obvious that you will act differently if there is any loss).
Let us suppose you do all this and you get the desired results after the first 15 minutes.
Here is a question: will you continue for the next 45 minutes or take a break?
The answer is: the professionals stop and the newbies continue.
A big disappointment awaits you if you don’t overcome the feelings of excitement and greed, and simply don’t appreciate the value of today’s profit. Perhaps, this fact marks the distinction between the leaders and losers of the binary market.
P.S. The strategies for the 15-minute binary options belong to the group of such methods for which every second is worth its weight in gold. Therefore, make sure in advance that you are being assisted only by a reliable broker.